Principles of Economics

Flashcards based on the key concepts and vocabulary from the Principles of Economics lecture.

Scarcity

The condition of limited resources in comparison to unlimited wants.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.

Factors of Production

Resources used in the production of goods and services, including land, labor, capital, and entrepreneurship.

Mixed Economy

An economic system that combines elements of both market economies and planned economies.

Free Market Economy

An economic system where prices are determined by unrestricted competition between privately owned businesses.

Command Economy

An economic system where the government makes all economic decisions and controls the factors of production.

Market Equilibrium

A situation where the supply of goods matches demand.

Supply Curve Shift

The change in the supply of a good or service due to factors other than price.

Demand Curve Shift

The change in the demand for a good or service due to factors other than price.

Luxury Goods

Goods for which demand increases as income rises, sometimes defying the law of demand.